Latest News Stream - Richmond Fed Services Index

The Richmond Fed’s Fifth District Service Sector Survey edged up in October 2026, with the revenues index rising to 2 from zero in September and the demand index increasing to 7 from 2. Expectations remained positive, with future revenues and demand indexes firmly in expansionary territory. The local business conditions index improved to -5 from -8, while the future local business conditions index was unchanged. The current employment index rose slightly to 3 from 2, while the future employment index fell to 11 from 19. Both current and future wage indexes remained positive. The average growth rate of prices paid increased, while the growth rate of prices received was unchanged. Over the next 12 months, firms expect price growth for inputs to slow, while price growth for their own products is expected to remain relatively steady.

The Richmond Fed Fifth District Service Sector Survey was flat in September 2026, with the revenues index rising to 0 from -8, while the demand index inched down to 2 from 3. Current business conditions improved, with the local business conditions index rising to -8 in September from -12 in August, while the future conditions index fell to 0 from 9. The current employment index fell to 2 in September from 8 in August, while the forward-looking employment index edged lower but remained positive. On prices, the average growth rate of prices paid decreased somewhat in September, while prices received increased a bit. Over the next 12 months, firms expected growth in prices paid to remain broadly stable, while anticipating a slight moderation in prices received. Looking ahead, firms remained relatively optimistic, as expectations for future revenues, demand and local conditions stayed firmly positive.

Activity in the US Fifth District’s service sector weakened somewhat in August, with the revenues index declining to -8 from -3 in July, while the demand measure eased to 3 from 5. Local business conditions also deteriorated (-12 from -5). The current employment index rose to 8 from 4, while expectations for future hiring remained strong. Wage growth also continued, according to both current and forward-looking measures. Meanwhile, price pressures showed some renewed momentum. The pace of increase in prices paid by firms accelerated slightly, while prices received also continued to rise. Businesses nevertheless expect input price growth to moderate over the coming year, although they anticipate little change in the pace of price increases charged to customers. Looking ahead, firms remained relatively optimistic, as expectations for future revenues, demand and local conditions stayed firmly positive.

The Richmond Fed Fifth District Service Sector Survey was broadly unchanged in July 2026, marking a second consecutive month of flat activity. The revenues index slipped to -3 from 0, while the demand index edged up to 5 from 4. Current local business conditions improved slightly to -5 from -7, although expectations weakened, with the future business conditions index falling to 9 from 16. Employment growth moderated, as the current employment index declined to 4 from 8, while the forward-looking employment gauge was little changed at 23, pointing to continued hiring plans. Wage growth remained firm, with both current and expected wage indexes staying in positive territory. Price pressures eased slightly, as the growth rate of prices paid slowed, while prices received rose marginally. Firms expect both measures to moderate further over the next 12 months.

The Richmond Fed Fifth District Service Sector Survey was flat in June 2026, with the revenues index falling to -1 from 14 and the demand index declining to 3 from 15. Local business conditions also weakened, with the index dropping to -9 from 0 in May. Despite softer current activity, expectations remained resilient, as the indexes for future revenues and demand stayed firmly in positive territory. The future local business conditions index rose to 15. Labor market conditions improved, with the current employment index increasing to 8 from -1, while the forward-looking employment index held steady at 24. Both current and expected wages remained firmly positive. On prices, firms reported slightly faster growth in prices paid, while price growth received was little changed. Over the next 12 months, businesses expect slower growth in input costs and a slight pickup in prices received.

The Fifth District Service Sector Survey revealed strong improvement in May 2026, with the revenues index rising to 14 from 9, its highest since December 2024, according to the Federal Reserve Bank of Richmond. The demand index also increased to 15 from 10. The indexes for future revenues and demand remained firmly in positive territory. The local business conditions index improved to 0 in May from -6 in April, while the future index rose to 12. The current employment index fell to -1 from 6, while the forward-looking employment index was broadly unchanged at 24. Both current and future wages indexes stayed in positive territory. The average growth rates of prices paid (5.4 vs 5.7) and received (3.4 vs 3.5) eased slightly. Firms expect growth in prices paid and received to slow a bit over the next 12 months.

The Fifth District Service Sector Activity remained relatively solid in April, as the revenues index held steady at 9, while the demand index eased to 10 from 21 but stayed in positive territory, pointing to continued expansion. Expectations remained strong, with forward-looking indexes for both revenues and demand firmly positive. The local business conditions index slipped to -6 from 2, while the outlook index edged down slightly to 6. Employment conditions softened modestly, with the current index falling to 6 from 9, though the forward-looking measure rose to 25, signaling hiring optimism. Wage growth remained stable, and firms continued to expect increases, while price pressures picked up slightly but are seen easing ahead.

The Fifth District Service Sector Survey showed improvement in March 2026, easing from four consecutive monthly contractions in activity and marking the highest reading since March 2025, according to the Federal Reserve Bank of Richmond. The revenues index rose to 9 from -8 in February and the demand index improved to 21 from -3. Expectations for future revenues (36 versus 35) and demand (33 versus 28) remained firmly in positive territory. The local business conditions increased to 2 from -10 in February, while expectations for the future decreased to 9 from 16. The current employment index rose to 9 from 0 in February, and the forward-looking employment index rose (22 versus 15). The wages index edged up (19 versus 17) and firms continue to expect wage increases over the next six months. Average growth rates of prices paid and received decreased slightly. Over the next 12 months, firms expect growth in prices paid to decrease and growth in prices received to remain steady.

The Fifth District Service Sector Survey indicated a fourth consecutive monthly contraction in activity in February 2026, the steepest in the current stretch, according to the Federal Reserve Bank of Richmond. The revenues index decreased to -8 from -3 and the demand index fell to -3 from 2. Expectations for future revenues (35 vs 34) and demand (28 vs 32) remained firmly in positive territory. The local business conditions index edged down to -10 from -6 in January, while the future local business conditions index rose to 16. The current employment index decreased to 0 in February from 5 in January, and the forward-looking employment index decreased to 15 from 20. The wages index inched down to 17 from 20 and firms continued to expect to increase wages over the next six months. The average growth in prices paid rose notably, while prices received edged up slightly. Firms expect price pressures on inputs to ease over the next 12 months, with prices received seen holding steady.

The Fifth District Service Sector Survey revealed a third consecutive monthly contraction in activity in January 2026, albeit at a slower pace, according to the Federal Reserve Bank of Richmond. The revenues index inched up to -3 from -6, while the demand index increased to 2 from -3. The current employment index was unchanged at 5 in January, while the forward-looking employment index rose to 20 from 14. The wages index increased slightly to 20 from 17 and firms continued to expect to increase wages over the next six months. Average prices paid declined noticeably in January, while prices received increased modestly. Firms expect price growth to remain broadly stable over the next 12 months. Meanwhile, expectations strengthened, with future revenue and demand indexes moving further into positive territory. The local business conditions index increased slightly to -6 in January from -11 in December, while the future local business conditions index was unchanged at 7.

The Fifth District Service Sector Survey showed a second consecutive contraction in activity in December 2025, according to the Federal Reserve Bank of Richmond. The revenues index inched down to -6 from -4 while the demand index decreased to -3 from 4. Expectations for future revenues and demand remained solidly in positive territory. The local business conditions index increased slightly to -11 from -15 in November, and the future outlook inched up to 7 from 4. The current employment index increased to 5 in December from 1 in November, while the forward-looking index fell to 14 from 24. The wages index increased to 17 from 12 and firms continued to expect to increase wages over the next six months. Turning to prices, the average growth rate of prices paid increased notably in December, while growth in prices received ticked up. Firms expected growth in prices paid to moderate and growth in prices received to decrease slightly over the next 12 months.

The Fifth District Service Sector Survey showed a contraction in activity in November 2025, according to the Federal Reserve Bank of Richmond. The revenues index fell to -4 from 4, while demand held steady at 4. Expectations for future revenues and demand improved and remained in positive territory. The local business conditions index slid to -15 from -1, though the outlook brightened to 4 from -3. Employment was nearly unchanged at 1, while the six-month outlook for hiring rose to 24 from 14. The wages index eased to 12 from 17, with firms still planning wage increases. Price growth moderated for both inputs and outputs, and firms expect slower cost growth but slightly stronger price gains over the next year.

The Fifth District Service Sector Survey showed flat activity in October 2025, according to the Federal Reserve Bank of Richmond. The revenues index rose slightly to 4 from 1, while demand held steady at 4. Expectations for future revenues and demand eased but stayed in positive territory. The local business conditions index improved to -1 from -7, though the outlook remained subdued at -3. Employment was unchanged at 0, while the six-month outlook for hiring rose to 14 from 11. The wages index held at 17, with firms continuing to expect wage increases. Price growth accelerated moderately for inputs and slightly for outputs, while firms anticipate slower cost growth and slightly stronger price gains over the next year.

The Fifth District Survey of Service Sector Activity slowed somewhat in September 2025, according to the most recent survey by the Federal Reserve Bank of Richmond. The revenues index edged down to 1 from 4 and the demand index fell to 3 from 13 in September. The indexes for future revenues and demand decreased but remained in positive territory in September. The local business conditions index fell to -7 from 6 in September. The future local business conditions index decreased to -2 from 11.The current employment index inched up to 0 in September from -1 in August, while the forward-looking index decreased to 11 from 20. The wages index fell to 17 and firms continued to expect to increase wages over the next six months. The average growth rates of prices paid and prices received decreased slightly in September. Firms expected growth in prices paid to increase slightly and expected growth in prices received to decrease slightly over the next 12 months.

The Fifth District Survey of Service Sector Activity indicated modest improvement in August 2025, according to the Richmond Fed. The revenues index inched up to 4 from 2 in July, while the demand index rose to 13 from 5. Expectations for future revenues and demand advanced further into positive territory. Local business conditions improved slightly, with the current index climbing to 6 from -8, and the future index rising to 11 from 6. Employment conditions were mixed, as the current employment index edged down to -1 from 0, while the future employment index increased sharply to 20 from 4. The wages index rose to 24, with firms continuing to expect wage growth over the next six months. On the price front, the growth rate of prices paid remained stable, while prices received rose modestly. Firms anticipate little change in the rate of price increases for their own goods and services over the next year.

The Fifth District Survey of Service Sector Activity showed modest improvement in July 2025, according to the Richmond Fed. The revenues index rose to 2 from an upwardly revised -1, while the demand index climbed to 5 from -4. Expectations remained positive, with future revenues and demand indexes holding steady. Local business conditions improved slightly, with the current index rising to -8 from -14, and the future index turning positive at 6 from -5. Employment conditions softened, as the current employment index edged down to 0 from 2, and the future employment index dropped to 4 from 15. The wages index ticked down to 18, though firms still expect to raise wages in the next six months. Price dynamics were mixed: the growth rate of prices paid slowed slightly, while prices received rose modestly. Firms anticipate stable input costs but expect the pace of price increases for their own goods and services to rise over the next year.

The Fifth District Survey of Service Sector Activity showed signs of improving in June 2025, with the revenues index increasing to -4, the highest reading in three months, from -11 in May. The indexes for future revenues and demand increased notably to 20 and 13, respectively. The local business conditions index edged up from -18 in May to -16 in June. The future local business conditions index remained in negative territory but improved from -18 to -11 in June. The current employment index increased from 0 to 3 in June, and the forward-looking index edged up from 11 to 14. The wages index ticked down to 19 and firms continued to expect to increase wages over the next six months. The average growth rates of prices paid and prices received increased slightly in June. Looking forward, firms expected little change in price growth over the next 12 months.

The Fifth District Survey of Service Sector Activity showed signs of weakening in May 2025, with the revenues index falling to -11, the worst reading since last August, from -7 in April. Meanwhile, the demand index improved from -12 to -8 in May, while the future revenues and demand indexes edged higher to 5 and 2, respectively. The local business conditions index increased from -30 in April to -18 in May. The future local business conditions index rose from -29 to -18 in May, remaining in negative territory. The current employment index fell from 8 to 0 in May, while the forward-looking employment index rose from 1 to 11. The wages index increased to 20, with firms continuing to anticipate wage hikes over the next six months. The average growth rates of prices paid and prices received remained largely unchanged in May. However, firms expect price growth to accelerate over the next 12 months.

The Fifth District Survey of Service Sector Activity showed a slowdown in March 2025, with the revenues index falling to -4 from 11 in February. The demand index fell to -6 from 13 but remained in positive territory. Both the future revenues and demand indexes decreased but remained in positive territory, reflecting broad optimism among firms for the next six months. However, the local business conditions index fell to -14 in March from 1 in February, and firms became less optimistic about future business conditions, with the index dropping to -5 from 8. The current employment index decreased slightly to 3 from 7, while the forward-looking employment index fell to 12 from 27. The wages index edged down to 19, with most firms expecting to increase wages over the next six months. The average growth rate of prices paid edged down, with firms expecting growth in prices to remain flat or increase somewhat over the next 12 months.

The Fifth District Survey of Service Sector Activity showed improvement in February 2025, with the revenues index surging to 11 from 4 in January. The demand index slightly dropped to 13 from 17 but remained in positive territory. Both the future revenues and demand indexes declined but stayed solidly in the positive range, reflecting broad optimism among firms for the next six months. However, the local business conditions index fell to 1 in February from 7 in January, and firms became less optimistic about future business conditions, with the index dropping to 8 from 36. The current employment index rose slightly to 7 from 3, while the forward-looking employment index remained strong at 27. The wages index was nearly unchanged at 24, with most firms expecting to increase wages over the next six months. The growth rate of prices paid increased, while prices received slightly declined, with firms expecting little change in price growth for the year ahead.